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Page 1 of 2 <br /> <br />CONSENT ITEM – 6B <br /> <br />MEMORANDUM <br /> <br />DATE: October 26, 2020 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> Dave Perrault, City Administrator <br /> <br />FROM: Gayle Bauman, Finance Director <br /> <br />SUBJECT: 2020 3rd Quarter Financials <br /> <br /> Budgeted Amount: Actual Amount: Funding Source: <br /> N/A N/A N/A <br /> <br />Council Should Consider <br /> <br />Quarterly, city staff provides the City Council with a budget to actual update. Please find the <br />attached General Fund, City-Wide Funds, permit data, and Investment Portfolio updates for <br />review. Also attached is a summary of the potential financial impacts due to COVID-19 through <br />the end of the quarter. The Council may choose to accept the reports as is or provide further <br />direction. <br /> <br />Discussion <br /> <br />Investments - per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At September <br />30, 2020 – this rate was 0.05% and our portfolio is averaging 2.17%. As investments start to <br />mature or be called, the city’s average rate will fall. All of our investments are in government <br />secured or government backed deposits. Utility billing cycles and CIP projects are taken into <br />account when determining how much to invest and for how long. <br /> <br />Basis of accounting – during the year, City books are kept on a cash basis which means that only <br />items that are received are booked as revenue and items paid are booked as expenses. <br />Adjustments for accruals, deferrals and other accounting requirements are made at year end. <br /> <br />General Fund – The main source of revenue for the City is property taxes and these come in <br />twice a year. Expenditures are at 67.7% of budget through the third quarter. <br />